You don't need cash. But again, you have to be very careful. Because if you only own TSLA, as TSLA drops, not only will your margin go down, but the margin requirement will go way up. I nearly lost everything a couple years ago in that exact scenario. I am not selling any PUTS after Dec 21 in case the SP drops hard after inclusion. If you do get a margin call, you can call the broker and buy deep in the money Puts cheaply that will expire worthless to make the margin call go away (I learned that too).
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
StealthP3D
Well-Known Member
jeewee3000
Active Member
I disagree. It's fine to mention the current stock price if you add some value or insight with your post. If not, don't clutter the general thread please. Too many posts to get through as it is.
Artful Dodger
"Neko no me"
TheTalkingMule
Distributed Energy Enthusiast
Congrats too everyone who bought calls last week! With early retirement, I'm more cautious now. As a friend of mine told me, "you don't need to hit home runs anymore, just singles."
lafrisbee
Active Member
Man that sounds BRILLIANT! But it's like you're the Banker and I am the 10 yr old that is putting his 50 cents in every other week so he can have $15 for his Christmas Fund.
"I haven't got a clue how you do that." and what's more I couldn't keep my attention focused on you long enough for you to explain because in my mind I can't do something that diabolical.
But good for you!
I used to have more SCTY than TSLA. Ended up the same!
You can't use stock as security to sell puts, except to the extent that the stock (any stock) justifies the cash available from your account or margin loan. Your only security is the ability to buy the stock if the put is exercised.Hey - how do you sell so many puts? Do you really have free cash at hand to buy 3000 shares at $420? (1.26 million USD)
That's kinda bearish? I am all in - no spare cash at all.
I am trying to figure out how to sell puts on margin at Schwab, with my stock as security.. guess I will have to call and see if its possible at all?
mejojo
Active Member
I, personally, started slacking off, THEN got FU rich, then retired, then got FM unrich, now back to FU rich and gonna hold onto it.
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StealthP3D
Well-Known Member
Maybe I misunderstand. But you say that as if you think his current broker (Schwab) doesn't already do exactly that (keep a running balance of your remaining buying power).
mejojo
Active Member
ENOUGH with the colonoscopy talk.
Does anyone here think this was a bad idea??Well they are still reasonably priced...
Edit: Just converted some TSLA into 6 x Mar 19 '21 $700s. Target: 300%
Asking for an impulsive friend who copied @gabeincal , thank you for your observations in advance.
Edit - And much thanks, @gabeincal , for the idea, which was just the little nudge I needed.
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lafrisbee
Active Member
Now about Jimmy's Grand dad.... so when does he have to disclose this thing he asked the SEC to not disclose?
I'm serious. He can't keep it a secret for long, can he?
I'm serious. He can't keep it a secret for long, can he?
insaneoctane
Well-Known Member
@Causalien, I would like to hear more about your suggestion. Like @lafrisbee, I might need some more specifics on how to accomplish this, but I am definitely listening!
TheTalkingMule
Distributed Energy Enthusiast
Legit institutional FOMO has begun. This is why you don't announce inclusion 38 days out.
Hmm, I wonder what the over-under on the 1000 Signature Roadsters selling out by the end of the year is now.
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